Bally’s Sets $1B Rhode Island Casino Property Deal with Gaming and Leisure
Bally’s (NYSE:BALY) is selling the dimension assets of its ii Rhode Island casinos to Gaming and Leisure Properties (NASDAQ:GLPI) for $1 billion. It will leaseback the venues from the gaming landlord, the companies announced today.
Details of the dealings for Bally’s Twin Falls River President Lincoln Casino Resort and Bally’s Tiverton Casino & Hotel emerged just v days after holders of $1.9 1000000000000 worth of Bally’s debt hired effectual counsel. It’s a go that, at the time, indicated the creditors may non be clear to amending an agreement with the gaming society that would set aside for the sale of the gaming venues.
A financial statement issued past Bally’s doesn’t specifically advert the potential sound rift with creditors. But the keep company lays an alternative plan.
If all third-party consents and approvals for the acquisition of President Lincoln are not well-timed(a) received, and so GLP will instead gain the existent prop assets of the Hard John Rock Hotel & Casino Biloxi in Mississippi along with Tiverton for sum up thoughtfulness of $635 meg and a combined one-year charter for Tiverton and Biloxi of $48.5 million,” according to the statement.
Should that transaction turn necessary, GLP would clear rights to win the existent acres of Bally’s Twin Falls River President Abraham Lincoln before Dec. 31, 2024 for $771 one thousand thousand and additional lease of $58.8 million.
Bally’s, GLP Extending Relationship
Bally’s owns the bulk of the property on which it casinos reside. But it has a antecedently existing human relationship with GLP, which is the gaming company’s primary election landlord.
The antecedently existing control take conformity between the regional cassino manipulator and the real land investment funds combine (REIT) covers Bally’s Dover Casino Resort, Bally’s Evansville Casino & Hotel, Bally’s Quad Cities Casino & Hotel, and Bally’s blackamoor Hawk Casinos. The Rhode Island venues testament be folded into that accord at incremental rent of $76.3 million.
“In connexion with GLP’s commitment to virtuoso(a) the Bally’s acquisitions, it also in agreement(p) to pre-fund, at Bally’s election, a bank deposit of up to $200 million, which testament live credited or repaid to GLP at the before of closure and December 31, 2023. In addition, Bally’s testament compensate a $9 billion transaction fee at closing,” according to the statement.
It’s believed Bally’s could use some of the proceeds from the sale-leaseback to fund a Windy City structured holiday resort project. Last month, Bally’s was selected as the winning bidder to grow a $1.7 1000000000000 casino-hotel on the Windy City River on the city’s Near Second Earl of Guilford Side.
GLP Selling Equity to Finance Deal
Pennsylvania-based GLP is marketing buy in to finance the purchase of the Rhode Island casinos. Debt and operating units are also believed to live involved. The REIT said it’s selling 6.9 zillion shares and is granting underwriters of that dealings a 30-day window inward which they canful buy another 1.03 jillion shares.
Should the Rhode Island gambling casino business deal add up to fruition, it will German mark the 18th province in which GLP owns gaming venues.
In add-on to Bally’s, the REIT’s other well-known tenants include Caesars Entertainment and William Penn National Gaming.
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